D-Street ends lower for 5th straight day; key reasons why Sensex, Nifty fell

By: |
Updated: Jul 24, 2019 4:41 PM

The benchmark equity indices -- Sensex and Nifty -- pared gains Wednesday, led by a sell-off in financial heavyweights, extending the losses for the fifth straight day.

economic survey, Sensex, Nifty, National Stock Exchange, BSE, economic survey 2019, economic survey 2019 pdf, economic survey 2018-19, economic survey csc, economic survey and budget, economic survey 2019-20, economic survey 2019 dowload, economic survey pdf, economic survey 2019-20pdfIndusInd Bank, Bajaj Finance, Tata Motors were among the biggest losers, shedding up to 4 per cent. Asian Paints, HUL, HDFC were the biggest gainers, jumping up to 3.5 per cent.

The benchmark equity indices — Sensex and Nifty — pared gains Wednesday, led by a sell-off in financial heavyweights, extending the losses for the fifth straight day. The Sensex ended 135 points down at 37,847.65 while the Nifty ended below the 11,300-mark. IndusInd Bank, Bajaj Finance, Tata Motors were among the biggest losers, shedding up to 4 per cent. Asian Paints, HUL, HDFC were the biggest gainers, jumping up to 3.5 per cent.

The major laggards Sensex pack included IndusInd Bank, Bajaj Finance, Tata Motors, Tata Steel, Hero MotoCorp, Axis Bank, M&M, Vedanta and Maruti. On the other hand, Asian Paints was the biggest gainer, after the company reported an 18 per cent increase in consolidated net profit for the June quarter. HUL, HDFC twins, HCL Tech and ITC too ended in the green.

“We expect volatility to remain high in the near term and the index to stage a strong recovery with support of 11000 levels. Midcap indices have been under pressure and currently trade near critical support levels; Any upside momentum would indicate possibility of a strong reversal in the space,” Sahaj Agarwal, Head of Derivatives, Kotak Securities said.

The selling pressure could continue in the coming sessions in the absence of any major domestic and global triggers, and hence we maintain our cautious stance on the Indian markets in near term, Ajit Mishra Vice President, Research, Religare Broking said.

“The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock specific volatility. Globally, investors would keenly watch for Fed meeting scheduled on 30/31 July. We would advise Investors to stay focused on selective blue chip companies, while traders should strictly hedge their leveraged positions, he added.

Technical analysis

“The markets had particularly no other incremental reason for remaining sluggish apart from the weak technical setup. The Markets are presently weak from the technical point of view and this weakness was initiated after the NIFTY breached the 100-DMA on the downside on a closing basis. However, we feel that this weakness is on the point of exhaustion and the markets are staring at an imminent technical pullback as it remains deeply oversold on a couple of lead indicators,” veteran technical analyst Milan Vaishnav said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Independent directors quitting over governance issues should state it clearly: Sebi
2Uday Kotak suggests capital adequacy-based framework for stock brokers
3HSBC maintains ‘buy’ on Oberoi Realty, raises target price to Rs 520 from Rs 490